Buying a route from a LCO

Discussion in 'Lawn Mowing' started by CuttinUP, Jun 27, 2007.

  1. CuttinUP

    CuttinUP LawnSite Senior Member
    Messages: 337

    When buying a route from another LCO, what is the norm for price? One, two, weeks revenue, or more?:confused:
  2. bigbone

    bigbone LawnSite Member
    Messages: 101

    I talked to an LCO last month and he said he paid 2 1/2 months!
  3. 02DURAMAX

    02DURAMAX LawnSite Gold Member
    Messages: 3,801

    I would never pay more than a month of revenue..if i was to buy a route from an LCO.
  4. cutbetterthanyou

    cutbetterthanyou LawnSite Bronze Member
    Messages: 1,178

    i paid one month but you got to watch people my guy went back and took 1/2 of them back the same year i bought them (little weasel)
  5. 02DURAMAX

    02DURAMAX LawnSite Gold Member
    Messages: 3,801

    Thats the bad part about buying like that don't know it the customer will stay with you long enough to make-up for the money you paid..unless you have a contract with all of them..
  6. Turf Technologies

    Turf Technologies LawnSite Senior Member
    from Florida
    Messages: 587

    When you sell you company someday, do you think 1 months gross is a fair amount?After all the hard work you put into building it up? Working long days in the heat and rain, until dark. How would you feel if someone said its not worth that much ill give less than half what your asking. When you get old and ready to retire and you wanna sell you company how much will there be for one months gross or a weeks gross. Why do we keep knocking ourselves down?
  7. fool32696

    fool32696 LawnSite Senior Member
    Messages: 993

    A friend of mine paid 3 months last year which wouldn't have been bad, but he lost about 30% of them the first year.

    Another guy I know paid 9 months(he says) a couple yrs ago and says he'll sell to me for 6 months...LOL.

    I think it would be worth 2 months if you could put down a deposit and pay the rest in say 6 months when you see who stays.
  8. johnnywill08

    johnnywill08 LawnSite Senior Member
    from MA z6
    Messages: 383

    i agree that we dont value ourselves properly enough, but you cant expect to sell your route for much $$ because of the risk involved to the buyer in terms of keeping/losing clients. the real money is made on equip that's bought & pd for.
  9. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    The norm down here is 2 months ... with the normal issues which follow buying a "route" ... how I did it was the 1st months pay went to the old guy n the last months went too me ... which I fowarded to him AFTER the following month

    My 1st route I got into was 50 accounts ... I only lost maybe 2-3 in the year ... some I still have now ... after 10 years ... most that left thru the years was with home sales, kids getting older n cutting the folks yard, people moving in with their own service or dad has a JD ...n the grim reaper paid a visit to some as well

    Buying a Business is a WHOLE other thing ... when I sell ... it will be ... as it is now ... Turn Key ...most won't even know a change in ownership
  10. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Messages: 4,993

    Find out what the route is and then wait till he goes out of business.

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